Question 1

List some noneconomic factors that can influence a firm's outsourcing decision.

Accepted Answer

There are several noneconomic factors th

Question 2

If a firm can sell a product for $40each,then what is the volume needed to breakeven if the fixed cost of production is $125,000 and labor and material costs are $30.per item?

Accepted Answer

A) 125,000 
B) 12,500 
C) 4,167 
D) 3,250 
A) 125,000 
B) 12,500 
C) 4,167 
D) 3,250

Question 3

Complex scheduling problems are most likely to occur with which process type?

Accepted Answer

A) mass production 
B) batch production 
C) continuous production 
D) None of these answer choices is correct. 
A) mass production 
B) batch production 
C) continuous production 
D) None of these answer choices is correct.

Question 4

Steel,paper,paints,and chemicals are examples of products that use

Accepted Answer

A) batch production. 
B) repetitive production. 
C) continuous production. 
D) mass production. 
A) batch production. 
B) repetitive production. 
C) continuous production. 
D) mass production.

Question 5

A process flowchart is a useful tool for analyzing a process because it often highlights nonproductive activities.

Accepted Answer

A) True 
 B)False

Question 6

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit.The following cost information describes the two alternatives   If total demand (volume)is 150,000 units,then the company should

Accepted Answer

A) select Process A with a profit of $1,300,000 to maximize profit 
B) select Process B with a profit of $750,000 to maximize profit 
C) select Process A with a profit of $1,000,000 to maximize profit 
D) select Process B with a profit of $1,050,000 to maximize profit 
A) select Process A with a profit of $1,300,000 to maximize profit 
B) select Process B with a profit of $750,000 to maximize profit 
C) select Process A with a profit of $1,000,000 to maximize profit 
D) select Process B with a profit of $1,050,000 to maximize profit

Question 7

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit.The following cost information describes the two alternatives.   The breakeven volume for Process A is

Accepted Answer

A) 50,000 units. 
B) 62,500 units. 
C) 30,000 units. 
D) 20,000 units. 
A) 50,000 units. 
B) 62,500 units. 
C) 30,000 units. 
D) 20,000 units.

Question 8

A process is a group of unrelated tasks with specific inputs and outputs.

Accepted Answer

A) True 
 B)False

Question 9

A print shop is an example of which of the following process choices?

Accepted Answer

A) project 
B) batch production 
C) continuous production 
D) mass production 
A) project 
B) batch production 
C) continuous production 
D) mass production

Question 10

Mass production is characterized by high volumes of a customized product for a mass market.

Accepted Answer

A) True 
 B)False

Question 11

Disadvantages of batch production include all of the following except

Accepted Answer

A) high per-unit costs. 
B) frequent changes in product mix. 
C) flexibility. 
D) scheduling problems. 
A) high per-unit costs. 
B) frequent changes in product mix. 
C) flexibility. 
D) scheduling problems.

Question 12

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit.The following cost information describes the two alternatives   For what level of volume (output)would the firm prefer Process A to Process B?

Accepted Answer

A) for all volume levels greater than 75,000 
B) for all volume levels greater than 97,500 
C) for all volume levels greater than 117,500 
D) for all volume levels greater than 125,000 
A) for all volume levels greater than 75,000 
B) for all volume levels greater than 97,500 
C) for all volume levels greater than 117,500 
D) for all volume levels greater than 125,000

Question 13

The ease of adjusting resources in response to changes in demand defines a firm's

Accepted Answer

A) vertical integration. 
B) process flexibility. 
C) customer involvement. 
D) capital intensity. 
A) vertical integration. 
B) process flexibility. 
C) customer involvement. 
D) capital intensity.

Question 14

Which of the following is not a characteristic of mass production?

Accepted Answer

A) made-to-stock 
B) stable demand 
C) high product variety 
D) high product volume 
A) made-to-stock 
B) stable demand 
C) high product variety 
D) high product volume

Question 15

Breakeven analysis examines the cost tradeoffs associated with demand volume when selecting a process.

Accepted Answer

A) True 
 B)False

Question 16

Supplier speed is rarely an important consideration in outsourcing decisions.

Accepted Answer

A) True 
 B)False

Question 17

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit.The following cost information describes the two alternatives   If total demand (volume)is 120,000 units,then the company should

Accepted Answer

A) select Process A with a profit of $940,000 to maximize profit 
B) select Process B with a profit of $450,000 to maximize profit 
C) select Process A with a profit of $700,000 to maximize profit 
D) select Process B with a profit of $690,000 to maximize profit 
A) select Process A with a profit of $940,000 to maximize profit 
B) select Process B with a profit of $450,000 to maximize profit 
C) select Process A with a profit of $700,000 to maximize profit 
D) select Process B with a profit of $690,000 to maximize profit

Question 18

As process selection moves up the diagonal from project to continuous production

Accepted Answer

A) demand volume increases. 
B) product variety increases. 
C) capital intensity decreases. 
D) flexibility increases. 
A) demand volume increases. 
B) product variety increases. 
C) capital intensity decreases. 
D) flexibility increases.

Question 19

What is a process strategy and how does it affect the firm?

Accepted Answer

A process strategy is an organization's

Question 20

Vertical integration is the degree to which a firm produces the parts that go into its products.

Accepted Answer

A) True 
 B)False

Exam 8: Processes and Technology

List some noneconomic factors that can influence a firm's outsourcing decision.

If a firm can sell a product for $40each,then what is the volume needed to breakeven if the fixed cost of production is $125,000 and labor and material costs are $30.per item?

Complex scheduling problems are most likely to occur with which process type?

Steel,paper,paints,and chemicals are examples of products that use

A process flowchart is a useful tool for analyzing a process because it often highlights nonproductive activities.

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit.The following cost information describes the two alternatives If total demand (volume)is 150,000 units,then the company should

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit.The following cost information describes the two alternatives. The breakeven volume for Process A is

A process is a group of unrelated tasks with specific inputs and outputs.

A print shop is an example of which of the following process choices?

Mass production is characterized by high volumes of a customized product for a mass market.

Disadvantages of batch production include all of the following except

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit.The following cost information describes the two alternatives For what level of volume (output)would the firm prefer Process A to Process B?

The ease of adjusting resources in response to changes in demand defines a firm's

Which of the following is not a characteristic of mass production?

Breakeven analysis examines the cost tradeoffs associated with demand volume when selecting a process.

Supplier speed is rarely an important consideration in outsourcing decisions.

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit.The following cost information describes the two alternatives If total demand (volume)is 120,000 units,then the company should

As process selection moves up the diagonal from project to continuous production

What is a process strategy and how does it affect the firm?

Vertical integration is the degree to which a firm produces the parts that go into its products.

Introduction to Operations and Supply Chain Management

Supplement Operational Decision-Making Tools: Decision Analysis

Quality Management

Statistical Process Control

Supplement Operational Decision-Making Tools: Acceptance Sampling

Product Design

Service Design

Capacity and Facilities

Supplement Operational Decision-Making Tools: Facility Location Models

Human Resources

Supplement Operational Decision-Making Tools: Work Measurement

Project Management

Supply Chain Management Strategy and Design

Global Supply Chain Procurement and Distribution

Supplement Operational Decision-Making Tools: Transportation and Transshipment Models

Forecasting

Inventory Management

Supplement Operational Decision-Making Tools: Simulation

Sales and Operations Planning

Supplement Operational Decision-Making Tools: Linear Programming

Enterprise Resource Planning

Lean Systems

Scheduling

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